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how to transfer money from your credit card to your bank account?

how to transfer money from your credit card to your bank account?

finance
December 30, 2021
10 min read
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money at your fingertips, all the time

credit cards act as a lifeguard when you need money in a pinch. but sometimes credit cards cannot be used for certain transactions. payment for mortgages, stocks, money orders are all such examples that do not accept a credit card payment. in such a scenario, you can always transfer money from your credit card to your bank account. here's all that you need to know about such a transaction.
when it comes to transferring money from a credit card to a bank account, there are 2 situations you might encounter.

when banks allow you to make a credit card to bank account transfer
you can do a direct transfer with the bank through net banking, money transfer credit card or phone call or indirectly using an e-wallet that is linked to your bank account.

when banks restrict you to make a credit card to bank account transfer
you can transfer money using cheques or ATM cash advances.

direct transfer to bank account
you can transfer funds from your credit card to your bank account directly using the net banking app or even over the phone. since the daily and monthly transfer limit varies from bank-to-bank, you would need to check that with your bank to get the updated information. if you are transferring funds to an account with the same bank as that of the credit card, the transfer is almost instant. however, if the transfer is to an account with another bank, then it should take two to three business days. 

net banking
money can be transferred by directly accessing your credit card’s online banking account. the charges for making a transfer from a credit card to a bank account varies from bank to bank. follow the procedure provided below:

  • step 1: open your bank’s website
  • step 2: log in to your credit card account
  • step 3: select the transfer option
  • step 4: enter the amount you want to transfer
  • step 5: enter the required details mentioned in the form
  • step 6: follow the prompts to complete transactions

phone call
if you need the cash immediately, and do not have access to the internet, the transfer is always a phone call away. the charges for making a transfer from a credit card to a bank account through a phone call will be the same as the amount charged via net banking. follow the steps provided below:

  • step 1: call your credit card company
  • step 2: request for a fund transfer
  • step 3: confirm the amount you want to transfer to the bank account
  • step 4: provide the bank account number and other details required
  • step 5: follow the prompts to complete the transaction

indirect transfer to bank account
e-wallets like Paytm and Payzapp are digital wallets that allow you to make transactions quickly and securely. these are linked to your bank account and require a KYC to be completed. 

what are the other transfer options do i have?
if your bank does not allow you to make a transfer from your credit card to the bank account, don’t sweat, there are some accepted hacks around this. here are a couple of options you can consider:

cheques: there is a facility known as ‘cheque to self’ where you can write a cheque to yourself. the money is taken from your credit card and is transferred to your bank account. 

what is the procedure?

  • step 1: include the name of the payee as ‘self’ 
  • step 2: include other necessary information as you normally would while writing a cheque
  • step 3: deposit the cheque at your bank branch

what are the charges?

  • the applicable fees and charges will depend on the cheque collection and deposit charges levied by your bank.

ATM cash advance: ATM cash advance is a facility that allows you to withdraw cash from an ATM using your credit card and deposit that amount to your bank account.

what is the procedure?

  • step 1: withdraw cash using your credit card at an ATM
  • step 2: deposit the cash at your bank’s branch

what are the charges?

  • the fees and charges for withdrawing cash using a credit card are generally high and are called cash advance fees. for example, HDFC Bank charges 2.5% cash advance fees on the total amount withdrawn. the cash advance charges vary from bank to bank.
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